The British Olympic Association (BOA) believes it is likely to lose its legal battle with the World Anti-Doping Agency (Wada).
If the BOA by-law - which prevents drug cheats competing at the Olympics - is revoked, sprinter Dwain Chambers would be eligible for London 2012 selection.
Cyclist David Millar is among others currently on a lifetime Games ban who would be allowed to try to qualify.
The Court of Arbitration for Sport (Cas) is expected to rule next week.
Although the BOA is privately prepared for defeat, communications director Darryl Seibel said: "We have not received any indication from Cas as to what the decision might be."
Chambers's lawyer Siza Agha said: "The only opinion that matters will be contained in the ruling of the three arbitrators charged with the responsibility of determining the BOA appeal."
The BOA has gone to Cas to challenge a ruling from Wada that its by-law is not compliant with the Wada code and therefore unenforceable.
The by-law was introduced more than 20 years ago and has kept a number of British athletes, including Chambers and Millar who have served doping bans, out of past Olympics.
Its argument, which has found support among a number of high-profile current British athletes and the International Olympic Committee, says its requirement that athletes have clean drugs records is part of its selection criteria for any Olympic Games, meaning the lifetime ban is not an additional punishment.
Last month, the BOA had expressed itself to be "cautiously optimistic" of winning the case.
However, leading sports lawyer Howard Jacobs - who helped American 400m runner LaShawn Merritt overturn his Olympic doping ban - later said he believed the BOA would end up on the "losing side".
Olympic 400m silver medallist Roger Black told BBC Radio 5 live he was disappointed by the latest development.
"I think it's a sad day because you have to accept that we will have people competing for our country who have knowingly tried to cheat other people and tried to cheat the system," said Black, who was runner-up for Britain to Michael Johnson at the 1996 Atlanta Games.
"This isn't a surprise. I always thought this would happen as you are talking about human rights against the rights of the BOA to decide how they select their team.
"The reason this has become an issue is we are pretty much alone on this one. Everyone else in the world recognises if an athlete serves his time, then he can come back and compete at the Olympic Games.
"We are out on a limb, and that limb is about to be severed."
Current world 400m champion Dai Greene believes tougher action is needed to deter doping.
"I don't think Britain should lower their standards to come in line with the rest of the world. The standards aren't tough enough, if anything. It would be disappointing if you see drugs cheats at the Olympic Games," said the Welshman.
Darren Campbell, who had his 2003 world championship 4x100m relay medal taken away after anchor-leg runner Chambers tested positive six months later for the steroid THG, said the rules were too inconsistent.
"What I want is clarity," said Campbell, who was stripped of his medal along with Chambers and team-mates Christian Malcolm and Marlon Devonish.
"It's up to Wada to change the rules so we don't have to keep revisiting this all the time."
Malcolm has said he hopes his old friend Chambers is given a chance to compete at London 2012. "He has served his time now," he said last month.
Athletes would still have to reach the Olympic qualifying standard to be considered for selection.
Chambers, 34, who served a two-year athletics ban after his positive test but has since competed at world and european championships, attempted to challenge the by-law in the High Court before the 2008 Beijing Olympics, but his case failed.
Millar, 35, who was banned from cycling for two years in 2004 after admitting to taking the blood-boosting drug EPO, has said he would not seek to overtun the BOA's lifetime ban.
20 April 2012
Last updated at 12:00 GMT
http://www.bbc.co.uk/sport/0/olympics/17781706
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